Austevoll Seafood ASA
OSE:AUSS
Austevoll Seafood ASA
Austevoll Seafood ASA, a prominent player in the global seafood industry, began its journey in the fjords of Norway, capitalizing on the rich maritime heritage of the region. Founded in 1981, the company skillfully navigated from a family-owned business into a global entity, keeping its roots firmly planted in sustainable and responsible marine practices. Austevoll's comprehensive business model spans the entire seafood value chain, from fish meal and oil production to aquaculture and fishing. This has allowed them to create an integrated operation that maximizes efficiency and reduces dependency on external suppliers. Such a vertically integrated approach is not merely a business choice but a strategic asset, facilitating tighter control over quality, supply chain, and cost management, ensuring a steady flow of high-quality products to the market.
The financial heart of Austevoll Seafood beats strongly on two fronts: pelagic fishery and salmon farming. The pelagic fishery aspect deals with species like herring and mackerel, caught in the North Atlantic Ocean and processed into products like fish meal and oil, which are in high demand for animal feed and industrial applications. On the other side, salmon farming is a major contributor to their revenue. Leveraging Norway's favorable coastal conditions, they produce premium Atlantic salmon, valued for its taste and nutritional qualities. This dual engine of processing and farming provides a diversified revenue stream, enabling Austevoll to weather market fluctuations while continually exploring innovations in sustainable seafood production, thereby solidifying its position in the industry.
Austevoll Seafood ASA, a prominent player in the global seafood industry, began its journey in the fjords of Norway, capitalizing on the rich maritime heritage of the region. Founded in 1981, the company skillfully navigated from a family-owned business into a global entity, keeping its roots firmly planted in sustainable and responsible marine practices. Austevoll's comprehensive business model spans the entire seafood value chain, from fish meal and oil production to aquaculture and fishing. This has allowed them to create an integrated operation that maximizes efficiency and reduces dependency on external suppliers. Such a vertically integrated approach is not merely a business choice but a strategic asset, facilitating tighter control over quality, supply chain, and cost management, ensuring a steady flow of high-quality products to the market.
The financial heart of Austevoll Seafood beats strongly on two fronts: pelagic fishery and salmon farming. The pelagic fishery aspect deals with species like herring and mackerel, caught in the North Atlantic Ocean and processed into products like fish meal and oil, which are in high demand for animal feed and industrial applications. On the other side, salmon farming is a major contributor to their revenue. Leveraging Norway's favorable coastal conditions, they produce premium Atlantic salmon, valued for its taste and nutritional qualities. This dual engine of processing and farming provides a diversified revenue stream, enabling Austevoll to weather market fluctuations while continually exploring innovations in sustainable seafood production, thereby solidifying its position in the industry.
Weaker Quarter: Austevoll Seafood reported a weaker quarter across all segments, mainly due to biological challenges in salmon farming, high sea lice pressure, and lower salmon spot prices.
Revenue: Q3 revenue was just north of NOK 10 billion, with EBITDA at NOK 652 million and EBIT at NOK 73 million. Including Pelagia, EBITDA was just under NOK 800 million.
Margin Pressure: Margins in the fishmeal and fish oil segments were impacted by lower prices, particularly in South America and the North Atlantic.
Salmon Volumes: Leroy slaughtered 59,000 tonnes of salmon in Q3, up 15% year-on-year, but lower prices and higher costs led to negative EBIT in farming.
Pelagic Segment: Lower raw material quotas and prices affected volumes and earnings in Peru, Chile, and the North Atlantic.
Guidance Maintained: Leroy maintained 2025 volume guidance at 195,000 tonnes and expects similar volumes in 2026.
Cash Position: Net cash increased by NOK 231 million in Q3, ending with nearly NOK 4.7 billion in cash and an equity ratio of 53%.
Outlook: Management expects continued cost pressure in Q4 but lower costs in 2026, and is cautiously optimistic about price developments in 2026.
